Business Description

Norfolk Southern Corporation is a premier Class I freight railroad company operating primarily in the Eastern United States. Headquartered in Atlanta, Georgia, the company manages an extensive rail network spanning 22 states and the District of Columbia. In 2025, Norfolk Southern agreed to an $85 billion merger with Union Pacific to create the first transcontinental U.S. railroad, a transaction currently pending regulatory approval.

Financial Statements

In thousands, USD
FY 2025FY 2024FY 2023FY 2022
Total Revenues12,180,00012,123,00012,156,00012,745,000
Cost of Sales6,583,0006,191,0006,891,0006,715,000
Gross Profit5,597,0005,932,0005,265,0006,030,000
Depreciation & Amortization Expenses1,393,0001,353,0001,298,0001,221,000
Other Operating Expenses(174,000)530,0001,116,000
Operating Profit4,356,0004,071,0002,851,0004,809,000
Interest Expense(792,000)(807,000)(722,000)(692,000)
Non-Operating Income101,00065,000191,00013,000
Total Non-Operating Income(691,000)(742,000)(531,000)(679,000)
Income Before Provision for Income Taxes3,665,0003,329,0002,320,0004,130,000
Provision for Income Taxes792,000707,000493,000860,000
Consolidated Net Income2,873,0002,622,0001,827,0003,270,000
Net Income Attributable to Common Shareholders2,873,0002,622,0001,827,0003,270,000
Basic EPS12.7611.588.0413.92
Diluted EPS12.7511.578.0213.88
Basic Weighted Average Shares Outstanding225,000226,100226,900234,800
Diluted Weighted Average Shares Outstanding225,300226,400227,400235,600
Shares Outstanding224,421226,321225,681228,076
FY 2025FY 2024FY 2023FY 2022
Cash and Cash Equivalents1,530,0001,641,0001,568,000456,000
Total Cash and Cash Equivalents1,530,0001,641,0001,568,000456,000
Accounts Receivable988,0001,069,0001,147,0001,148,000
Total Trade Receivables988,0001,069,0001,147,0001,148,000
Inventories271,000277,000264,000253,000
Other Current Assets409,000201,000292,000150,000
Total Current Assets3,198,0003,188,0003,271,0002,007,000
Net Property, Plant & Equipment36,479,00035,831,00033,326,00032,156,000
Long-Term Investments4,089,0003,370,0003,839,0003,694,000
Other Long-Term Assets1,470,0001,293,0001,216,0001,028,000
Total Assets45,236,00043,682,00041,652,00038,885,000
Accounts Payable1,863,0001,704,0001,638,0001,293,000
Short-Term Debt100,000
Current Portion of Long-Term Debt607,000555,0004,000603,000
Other Current Liabilities1,305,0001,286,000990,000653,000
Total Current Liabilities3,775,0003,545,0002,632,0002,649,000
Long-Term Debt16,480,00016,651,00017,175,00014,479,000
Other Long-Term Liabilities9,434,0009,180,0009,064,0009,024,000
Total Long-Term Liabilities25,914,00025,831,00026,239,00023,503,000
Total Liabilities29,689,00029,376,00028,871,00026,152,000
Common Stock226,000228,000227,000230,000
Additional Paid-in Capital2,296,0002,247,0002,179,0002,157,000
Accumulated Other Comprehensive Income(210,000)(262,000)(320,000)(351,000)
Retained Earnings13,235,00012,093,00010,695,00010,697,000
Total Common Shareholders' Equity15,547,00014,306,00012,781,00012,733,000
Total Shareholders' Equity15,547,00014,306,00012,781,00012,733,000
Total Liabilities and Shareholders' Equity45,236,00043,682,00041,652,00038,885,000
FY 2025FY 2024FY 2023FY 2022
Net Income2,873,0002,622,0001,827,0003,270,000
Depreciation & Amortization1,393,0001,353,0001,298,0001,221,000
Other Adjustments24,000(314,000)(98,000)1,000
Changes in Trade Receivables59,00085,000(2,000)(171,000)
Changes in Inventories6,000(13,000)(11,000)(35,000)
Changes in Other Operating Activities6,000319,000165,000(64,000)
Cash from Operating Activities4,361,0004,052,0003,179,0004,222,000
Capital Expenditure(2,204,000)(2,381,000)(2,327,000)(1,948,000)
Proceeds from Sale of Property, Plant & Equipment164,000558,00086,000263,000
Purchases of Investments(621,000)(319,000)(124,000)(12,000)
Proceeds from Sale of Investments99,0001,005,000205,00094,000
Payments for Business Acquisitions(1,643,000)(22,000)
Cash from Investing Activities(2,562,000)(2,780,000)(2,182,000)(1,603,000)
Issuance of Long-Term Debt396,0001,051,0003,293,0001,832,000
Repayments of Long-Term Debt(559,000)(1,055,000)(1,334,000)(553,000)
Net Issuance / (Repayments) of Long-Term Debt(163,000)(4,000)1,959,0001,279,000
Issuance of Common Shares2,00026,0003,000(4,000)
Repurchases of Common Shares(534,000)(622,000)(3,110,000)
Net Issuance / (Repurchases) of Common Shares(532,000)26,000(619,000)(3,114,000)
Common Share Dividends Paid(1,215,000)(1,221,000)(1,225,000)(1,167,000)
Cash from Financing Activities(1,910,000)(1,199,000)115,000(3,002,000)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash(111,000)73,0001,112,000(383,000)

Key Metrics & Ratios

MetricValue
Market Cap$64.79B
P/E22.64x
P/S5.32x
EV/EBITDA13.98x
Return on Equity19.2%
Return on Invested Capital8.2%
Current Ratio0.85x
Dividend Yield1.9%
Free Cash Flow Margin17.7%

Margins

Gross margin
46.0%
Operating margin
35.8%
Net margin
23.6%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q2 2026 $3.46B +11.4% 32.4% $1.12B
Q1 2026 $3.00B +0.2% 29.3% $877M
Q4 2025 $2.97B -1.7% 31.5% $937M
Q3 2025 $3.10B +1.7% 35.4% $1.10B
Q2 2025 $3.11B 37.8% $1.18B
Q1 2025 $2.99B 38.3% $1.15B
Q4 2024 $3.02B 37.4% $1.13B
Q3 2024 $3.05B 52.3% $1.60B

More on Norfolk Southern Corporation

Figures compiled from public company filings.

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